Mexican retailer Comercial Mexicana (Comerci) has today reached the deadline given by key creditors to form a debt restructuring deal after the company defaulted on its debt in October, which jumped to over US$2bn following huge derivative losses.
Since that time, the group has been trying to find a way out of the situation while avoiding selling assets and giving creditors a stake in the company, according to Reuters.
On Wednesday, the group said that four creditors had given it just two more days to formulate a restructuring programme.
Five previous extensions on standstills with creditors, which has so far kept the issue out of the courts, lasted a minimum of two weeks each.
However, the group was last year denied in its attempt to gain protection from creditors by Mexican courts, forcing it to seek the settlements with multiple debt holders.
Banamex brokerage said in a report on Thursday that Wednesday's extension 'allows us to reach the following conclusions: That Comerci and its creditors have not reached a satisfactory agreement to restructure its financial obligations, and that time is running out, increasing the chances of resorting to courts,' Reuters reported.
